NOTICE DATE: July 30, 2010
NOTICE TYPE: M-B073010-01
Settlements
SHORT DESCRIPTION: Price
Correction of MCPEs for Settlement Intervals during the Nodal 8-hour LFC Test
for Operating Day June 17, 2010
INTENDED AUDIENCE: QSE Settlement
Personnel
DAY AFFECTED: June 17, 2010
LONG
DESCRIPTION:
ERCOT is correcting the zonal Market Clearing Prices for Energy (MCPEs) for the
Settlement Intervals ending 1015-1400 on Operating Day June 17, 2010.
These Settlement Intervals occurred during the Nodal 8-hour Load Frequency
Control (LFC) Test when Commercially Significant Constraints (CSCs) in zonal
were seen as active.
For the 8-hour LFC Test, the
Key-Document titled “Market Trials Phase 5 LFC Testing (fka, EDS 3 R6.3
LFC Testing)” indicated the following: “Zonal congestion management
techniques (OC1) will not be used in the two hour period leading up to the test
and during the test.” Thus, pursuant to the applicable LFC testing
procedure, all congestion would be addressed locally and there would be no
price separation between zones for the relevant intervals.
However, as described at Technical Advisory Committee (TAC) and
Nodal Advisory Task Force (NATF) meetings held earlier this month, the West to
North Operational Congestion 1 (OC1) for stability was not completely
de-activated in zonal. This resulted in zonal price separation. To comply with
the above referenced Key-Document, ERCOT is correcting the prices (as attached)
for the relevant intervals to reflect the zonal market solution (MCPEs) with
the OC1 deactivated. This correction results in a single system-wide price for
these Settlement Intervals.
On July 16, 2010, ERCOT updated
the Key-Document to implement the following practice for future LFC Tests:
“Zonal congestion management techniques (OC1) will be used during the
transition period in moving from zonal and total nodal control and vice versa,
but will not be used during the testing period when all resources are under
full nodal control.” As such, OC1 constraints may be active for LFC test
transitional Settlement Intervals. During full Nodal system control, ERCOT will
not activate the OC1/CSCs. During the LFC Test, ERCOT will actively manage
system constraints at the local level to ensure reliable operations.
Accordingly, during LFC testing periods there will be no zonal price separation
and there will be a single system wide price.
ADDITIONAL
INFORMATION: Protocol
Section 9.2.5, Resettlement Statement, directs ERCOT to resettle an
Operating Day “when the total of all significant errors in data results
in an impact greater than two-percent (2%) of the ERCOT Operating Day market
transaction dollars, excluding bilateral transactions.” The price
corrections for Operating Day June 17, 2010 result in an impact greater than 2%
of the total dollars transacted. The resettlement of Operating Day June 17,
2010, is tentatively scheduled to post on Monday, August 2, 2010. Pursuant to
Protocol Section 9.2.5.1, Notice of Resettlement, details of the
resettlement will be provided in a subsequent Notice on the resettlement date.
Please
see the attached Price correction report for price details.
CONTACT: If you have any questions, please contact your ERCOT
Account Manager. You may also call the general ERCOT Client Services phone
number at (512) 248-3900 or contact ERCOT Client Services via email at [log in to unmask].
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dh